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Compensation Plans | 9 Months Ended
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Sep. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Compensation Plans | Compensation Plans Share-Based Payment Transactions The Company maintains the shareholder-approved Diamond Hill Investment Group, Inc. 2022 Equity and Cash Incentive Plan (the “2022 Plan”), which authorizes the issuance of 300,000 common shares of DHIL in various forms of equity awards. As of September 30, 2023, there were 236,595 common shares of DHIL available for grants under the 2022 Plan. Previously, the Company issued equity awards under the Diamond Hill Investment Group, Inc. 2014 Equity and Cash Incentive Plan (the “2014 Plan”). There are no longer any DHIL common shares available for issuance under the 2014 Plan, although grants previously made under the 2014 Plan remain issued and outstanding. Restricted stock grants represent DHIL common shares issued and outstanding upon grant subject to vesting restrictions. The Company issues restricted stock grants that cliff vest after five years to all new Company employees upon hire and additional awards annually to key Company employees in the form of three-year graded vesting stock grants. Restricted stock grants are valued based upon the fair market value of the DHIL common shares on the applicable grant date. The restricted stock grants are recorded as deferred compensation in the equity section of the balance sheet on the grant date and then recognized as compensation expense on a straight-line basis over the vesting period of the respective grant. The Company’s policy is to adjust compensation expense for forfeitures as they occur. The following table represents a roll-forward of outstanding restricted stock and related activity for the nine months ended September 30, 2023:
| Shares |  | Weighted-Average Grant Date Price per Share
Outstanding restricted stock as of December 31, 2022 | 219,459 |  |  | $ | 165.62 |
Grants issued | 57,464 |  |  | 187.63 |
Grants vested | (79,445) |  |  | 184.17 |
Grants forfeited | (4,191) |  |  | 162.40 |
Total outstanding restricted stock as of September 30, 2023 | 193,287 |  |  | $ | 164.60 |
Total deferred equity compensation related to unvested restricted stock was $18.2 million as of September 30, 2023. The recognition of compensation expense related to deferred compensation over the remaining vesting periods is as follows:
Three Months Remaining In |  |  |  |  |  |  |  |  |  |  |  |
2023 |  | 2024 |  | 2025 |  | 2026 |  | 2027 |  | Thereafter |  | Total
$ | 3,068,616 |  |  | $ | 8,947,895 |  |  | $ | 4,569,484 |  |  | $ | 1,236,627 |  |  | $ | 296,619 |  |  | $ | 95,347 |  |  | $ | 18,214,588 |
Employee Stock Purchase Plan Under the Diamond Hill Investment Group, Inc. Employee Stock Purchase Plan (the “ESPP”), eligible employees may purchase DHIL common shares at 85% of the fair market value on the last day of each offering period. Each offering period is approximately three months, which coincides with the Company’s fiscal quarters. During the nine-month period ended September 30, 2023, ESPP participants purchased 2,659 DHIL common shares for $0.4 million, and the Company recorded $0.1 million of share-based payment expense related to these purchases. During the nine-month period ended September 30, 2022, ESPP participants purchased 3,176 DHIL common shares for $0.5 million and the Company recorded $0.1 million of share-based payment expense related to these purchases. Stock Grant Transactions The following table represents DHIL common shares issued as part of the Company's annual incentive award program during the nine-month periods ended September 30, 2023, and 2022:
| Shares Issued |  | Grant Date Value
September 30, 2023 | — |  |  | — |
September 30, 2022 | 2,743 |  |  | $ | 487,870 |
401(k) Plan The Company sponsors a 401(k) plan in which all Company employees are eligible to participate. Company employees may contribute a portion of their compensation subject to certain limits based on federal tax laws. The Company matches employee contributions equal to 250.0% of the first 6.0% of an employee’s compensation contributed to the plan. The Company settles the 401(k) plan matching contributions in cash or common shares of DHIL based on the election of the employees. Deferred Compensation Plans The Company offers two deferred compensation plans: the Diamond Hill Fixed Term Deferred Compensation Plan and the Diamond Hill Variable Term Deferred Compensation Plan (together, the “Deferred Compensation Plans”). Under the Deferred Compensation Plans, participants may elect to voluntarily defer, for a minimum of five years (subject to an earlier distribution in the case of the participant’s death or disability or a change in control of DHIL), certain incentive compensation that the Company then contributes into the Deferred Compensation Plans. Participants are responsible for designating investment options for the assets they contribute, and the distribution paid to each participant reflects any gains or losses on the assets realized in connection with the Deferred Compensation Plans. Assets held in the Deferred Compensation Plans are included in the Company’s investment portfolio, and the associated obligation to participants is included in deferred compensation liability. Deferred compensation liability was $32.4 million and $30.7 million as of September 30, 2023 and December 31, 2022, respectively.

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